A hindrance to saving is inflation and rates of interest as economists explain.
Ok if you leave the money in a sock in the house it loses value quicker than if you put the money in an interest paying savings account. But the savings account still loses the value of money if inflation is greater than the interest rate.
African governments have a history of not taking inflation seriously. This seems to be changing for the better. But currency instability importing inflation where currency loses value against the dollar is still a bug problem and disincentive to saving.
People will tend to buy something that retains value against inflation rather than save the money.
A hindrance to saving is inflation and rates of interest as economists explain.
Ok if you leave the money in a sock in the house it loses value quicker than if you put the money in an interest paying savings account. But the savings account still loses the value of money if inflation is greater than the interest rate.
African governments have a history of not taking inflation seriously. This seems to be changing for the better. But currency instability importing inflation where currency loses value against the dollar is still a bug problem and disincentive to saving.
People will tend to buy something that retains value against inflation rather than save the money.